The legislature of Arizona is taking proactive steps to incorporate cryptocurrencies, including Bitcoin ETFs, into the state’s retirement fund portfolios. This initiative comes shortly after the United States Securities and Exchange Commission authorized the trading of Bitcoin Spot ETFs, potentially marking a significant step towards broader institutional adoption of digital assets.
The concurrent resolution passed by the State Senate seeks to encourage managers of the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to monitor the newly approved investment vehicles and consider adding exposure to them. The measure was passed in the Senate by a vote of 16 to 13, reflecting a clear partisan divide on the issue.
State Senator Wendy Rogers, a Republican, who had previously attempted to make Bitcoin a legal means of payment in the state in 2022, strongly supports this resolution. While her previous proposal did not advance, this new resolution, which does not require the signature of Arizona Governor Katie Hobbs to move forward, could mark a turning point in how digital assets are perceived and integrated at the state level.
If adopted, the resolution will require the ASRS and PSPRS to create a report evaluating the feasibility, risks, and potential benefits of directing a portion of the state’s retirement fund assets towards digital asset ETFs.
Despite this enthusiasm, the United States Department of Labor has issued warnings to retirement plan fiduciaries, advising them to exercise “extreme caution” before adding a cryptocurrency option to a 401(k) investment menu.
